I worry that all this talk about "China can't be allowed to beat the West on LLMs" is a setup to saddle the public with a bailout in the name of national security.

Is there any evidence to suggest that we won't be? I'd argue that's been the status quo for decades now, so I wouldn't expect anything else (as much I hate the current state of affairs).

this would be the real travesty

of course they will. has capitalism changed anytime recently?